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Loan calculator

For any amortising loan, the monthly payment depends on loan amount, rate, and term. Test scenarios and see total interest paid.

Updated July 2026
$
%
Monthly payment
$396
Total interest
$3,761
Total paid
$23,761

How it works

Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n − 1]
  • P is the loan amount.
  • r is the monthly interest rate (annual rate ÷ 12).
  • n is total number of monthly payments.
  • Total interest = (Monthly Payment × n) − P.

Worked examples

  • $20,000 auto loan at 7% for 5 years: ~$396/month, ~$3,762 total interest.
  • $10,000 personal loan at 12% for 3 years: ~$332/month, ~$1,957 total interest.
  • Adding just $50/month extra typically cuts months off any loan and saves meaningful interest.

Frequently asked questions

What is a good interest rate on a loan?

Varies by loan type and credit score. Prime auto loans currently sit around 6–9%; personal loans 8–15%; mortgages 6–7%. Anything much above those bands deserves shopping.

Should I pay off loans early?

For high-rate loans (above ~7% APR), usually yes. For low-rate loans, investing the extra often produces more wealth. Always capture any employer 401(k) match first.

APR vs interest rate?

APR includes most mandatory fees, so you can compare loans on equal footing. Interest rate is the pure cost of borrowing; APR is the true cost.

Related

APR (glossary)
Definition and how it differs from rate.
Mortgage calculator
Specialised for home loans.
Debt payoff calculator
Compare payoff strategies across debts.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.